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Voya Financial (VOYA) Q2 Earnings Top on Solid Underwriting
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Voya Financial (VOYA - Free Report) reported second-quarter 2023 adjusted operating earnings of $2.31 per share, which beat the Zacks Consensus Estimate by 12.7%. The bottom line increased 38.3% year over year on strong net underwriting results.
Voya Financial, Inc. Price, Consensus and EPS Surprise
Adjusted operating revenues amounted to $347 billion, which increased 43.4% year over year. The top line also beat the Zacks Consensus Estimate by 8.8%.
Net investment income declined 6.2% year over year to $545 million. Meanwhile, fee income of $474 million increased 14.8% year over year. Premiums totaled $677 million, up 13.4% from the year-ago quarter.
Total benefits and expenses were $1.6 billion, up 17.2% from the year-ago quarter.
As of Jun 30, 2023, VOYA’s assets under management, assets under administration and advisement totaled $789 million.
Segmental Update
Wealth Solutions reported adjusted operating earnings of $174 million, which decreased 11.7% year over year, primarily due to higher administrative expenses and lower alternative investment income. Full-service recurring deposits grew 9.5% to $14.0 billion.
Health Solutions adjusted operating earnings amounted to $124 million, which increased more than two-fold year over year due to strong in-force block growth, favorable underwriting results and the positive impact of the Benefitfocus acquisition. Annualized in-force premiums and fees grew 22.2% to $3.3 billion, reflecting growth across all product lines, favorable retention and the positive impact of the Benefitfocus acquisition.
Investment Management posted adjusted operating earnings of $33 million, which increased 25% year over year, due to the positive impact of the Allianz Global Investors (AllianzGI) transaction. Net outflows were $5.1 billion during the trailing 12 months ended Jun 30, 2023.
Corporate incurred an adjusted operating loss of $54 million, flat year over year.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.2 billion, which increased 30% year over year. Total investments amounted to $37.6 billion, down 4% year over year.
Long-term debt at quarter-end was flat from 2022 end at $2.1 billion. The financial leverage ratio deteriorated 230 basis points year over year to 37.7%. As of Jun 30, 2023, book value per share (excluding AOCI) was $55.59, which decreased 6.7% year over year.
Voya Financial exited the second quarter with more than $0.5 billion in excess capital.
Capital Deployment
Voya Financial deployed $0.2 billion in excess capital in second-quarter 2023 — including $162 million in share repurchases and $21 million in common stock dividends.
The board of directors authorized doubling of common stock dividend to 40 cents per share and $500 million in share buyback. The buyback authorization is now $609 million and will expire on Sep 30, 2024.
AMERISAFE, Inc. (AMSF - Free Report) reported second-quarter 2023 adjusted earnings per share of 73 cents, which outpaced the Zacks Consensus Estimate by 5.8%. The bottom line improved 7.4% year over year. Operating revenues deteriorated 4.4% year over year to $73.5 million. The top line missed the consensus mark by 2.4%.
Net premiums earned amounted to $65.6 million, which decreased 6.7% year over year in the second quarter. Pre-tax underwriting profit of $9.5 million improved 1.5% year over year. The net combined ratio of 85.4% improved 130 basis points year over year. The figure was better than our estimate of 85.5%.
Aflac Incorporated (AFL - Free Report) reported second-quarter 2023 adjusted earnings per share of $1.58, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 7.5% year over year. Aflac’s revenues dropped 2.7% year over year to $5,172 million in the quarter under review. The top line, however, beat the consensus mark by 14.5%.
Adjusted net investment income fell 3% year over year to $892 million. Aflac estimates improved sales in its Japan business for 2023, buoyed by product launches, product updates and Japan Post performance.
Management also remains optimistic about strong sales results within its U.S. business. Improving productivity, contributions from platforms like network dental and vision and group life, and disability are expected to continue supporting the results.
Unum Group’s (UNM - Free Report) second-quarter 2023 operating net income of $2.06 per share beat the Zacks Consensus Estimate by 10.2%. The bottom line increased 7.9% year over year. Total operating revenues of Unum Group were $3.1 billion, up 2% year over year, as higher premium income and other income were offset by lower net investment income. The top line beat the Zacks Consensus Estimate by 1.4%.
Premium increased 3.9% from the prior-year quarter to $2.5 billion. Our estimate was $2.6 billion. The Zacks Consensus Estimate was pegged at $2.5 million. UNM expects adjusted operating income per share to increase 20% to 25%.
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Voya Financial (VOYA) Q2 Earnings Top on Solid Underwriting
Voya Financial (VOYA - Free Report) reported second-quarter 2023 adjusted operating earnings of $2.31 per share, which beat the Zacks Consensus Estimate by 12.7%. The bottom line increased 38.3% year over year on strong net underwriting results.
Voya Financial, Inc. Price, Consensus and EPS Surprise
Voya Financial, Inc. price-consensus-eps-surprise-chart | Voya Financial, Inc. Quote
Adjusted operating revenues amounted to $347 billion, which increased 43.4% year over year. The top line also beat the Zacks Consensus Estimate by 8.8%.
Net investment income declined 6.2% year over year to $545 million. Meanwhile, fee income of $474 million increased 14.8% year over year. Premiums totaled $677 million, up 13.4% from the year-ago quarter.
Total benefits and expenses were $1.6 billion, up 17.2% from the year-ago quarter.
As of Jun 30, 2023, VOYA’s assets under management, assets under administration and advisement totaled $789 million.
Segmental Update
Wealth Solutions reported adjusted operating earnings of $174 million, which decreased 11.7% year over year, primarily due to higher administrative expenses and lower alternative investment income. Full-service recurring deposits grew 9.5% to $14.0 billion.
Health Solutions adjusted operating earnings amounted to $124 million, which increased more than two-fold year over year due to strong in-force block growth, favorable underwriting results and the positive impact of the Benefitfocus acquisition. Annualized in-force premiums and fees grew 22.2% to $3.3 billion, reflecting growth across all product lines, favorable retention and the positive impact of the Benefitfocus acquisition.
Investment Management posted adjusted operating earnings of $33 million, which increased 25% year over year, due to the positive impact of the Allianz Global Investors (AllianzGI) transaction. Net outflows were $5.1 billion during the trailing 12 months ended Jun 30, 2023.
Corporate incurred an adjusted operating loss of $54 million, flat year over year.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.2 billion, which increased 30% year over year. Total investments amounted to $37.6 billion, down 4% year over year.
Long-term debt at quarter-end was flat from 2022 end at $2.1 billion. The financial leverage ratio deteriorated 230 basis points year over year to 37.7%. As of Jun 30, 2023, book value per share (excluding AOCI) was $55.59, which decreased 6.7% year over year.
Voya Financial exited the second quarter with more than $0.5 billion in excess capital.
Capital Deployment
Voya Financial deployed $0.2 billion in excess capital in second-quarter 2023 — including $162 million in share repurchases and $21 million in common stock dividends.
The board of directors authorized doubling of common stock dividend to 40 cents per share and $500 million in share buyback. The buyback authorization is now $609 million and will expire on Sep 30, 2024.
Zacks Rank
Voya Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
AMERISAFE, Inc. (AMSF - Free Report) reported second-quarter 2023 adjusted earnings per share of 73 cents, which outpaced the Zacks Consensus Estimate by 5.8%. The bottom line improved 7.4% year over year. Operating revenues deteriorated 4.4% year over year to $73.5 million. The top line missed the consensus mark by 2.4%.
Net premiums earned amounted to $65.6 million, which decreased 6.7% year over year in the second quarter. Pre-tax underwriting profit of $9.5 million improved 1.5% year over year. The net combined ratio of 85.4% improved 130 basis points year over year. The figure was better than our estimate of 85.5%.
Aflac Incorporated (AFL - Free Report) reported second-quarter 2023 adjusted earnings per share of $1.58, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 7.5% year over year. Aflac’s revenues dropped 2.7% year over year to $5,172 million in the quarter under review. The top line, however, beat the consensus mark by 14.5%.
Adjusted net investment income fell 3% year over year to $892 million. Aflac estimates improved sales in its Japan business for 2023, buoyed by product launches, product updates and Japan Post performance.
Management also remains optimistic about strong sales results within its U.S. business. Improving productivity, contributions from platforms like network dental and vision and group life, and disability are expected to continue supporting the results.
Unum Group’s (UNM - Free Report) second-quarter 2023 operating net income of $2.06 per share beat the Zacks Consensus Estimate by 10.2%. The bottom line increased 7.9% year over year. Total operating revenues of Unum Group were $3.1 billion, up 2% year over year, as higher premium income and other income were offset by lower net investment income. The top line beat the Zacks Consensus Estimate by 1.4%.
Premium increased 3.9% from the prior-year quarter to $2.5 billion. Our estimate was $2.6 billion. The Zacks Consensus Estimate was pegged at $2.5 million. UNM expects adjusted operating income per share to increase 20% to 25%.